Asia shares mixed ahead of U.S. inflation data

by Jonathan Adams
inflation pressures

Investors were watching for cues on inflation to gauge the direction of economic growth, as well as the strength of the dollar

Asian shares were mixed in muted trading Tuesday after U.S. stock indexes were little changed ahead of the release of inflation data.

Japan’s benchmark Nikkei 225 shed early gains and was trading less than 0.1% higher at 38,194.38.

Australia’s S&P/ASX 200 slid 0.2% to 7,731.40. South Korea’s Kospi was little changed, inching up less than 0.1% to 2,726.76. Hong Kong’s Hang Seng was up less than 0.1% at 19,115.78, while the Shanghai Composite shed around 0.3% to 3,139.89.

Investors were watching for cues on inflation to gauge the direction of economic growth, as well as the strength of the dollar.

Today marks a significant day for both Germany and the U.S.A. as they are set to unveil crucial economic data, said Luca Santos, market analyst at ACY Securities, referring to consumer price data from Germany and producer costs in the U.S.

Despite their different focuses, both indices offer insights into how inflation is shaping society, Santos added.

On Monday, the S&P 500 edged down less than 0.1%, to 5,221.42 after flipping between small gains and losses through the day. It remains within 0.6% of its record set at the end of March.

The DJIA slid 0.2% to 39,431.51, and the Nasdaq composite advanced 0.3%, to 16,338.24.

Stocks have broadly rallied this month following a rough April on revived hopes that inflation may ease enough to convince the Fed to cut its main interest rate later this year. A key test for those hopes will arrive Wednesday, when the U.S. government offers the latest monthly update on inflation that households are feeling across the country.

Other reports this week include updates on inflation that wholesalers are seeing and sales at U.S. retailers. They could show whether concerns are warranted about a worst-case scenario for the country, where sticky inflation forms a devastating combination with a stagnating economy.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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